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Measuring the National Economy
Inflation
Role of Government
Economic Logic
Miscellaneous
100
Has the largest GDP in the world as of 2015.
What is the USA?
100
Less common than inflation, but potentially more problematic for a national economy.
What is deflation?
100
The entity that, in the United States, can raise or lower taxes.
What is the US Congress?
100
A fall in GDP in two successive quarters.
What is a recession?
100
A currency held in large quantities by other states, used in international transactions.
What is a Reserve Currency?
200
A measure of the wealth of a nation divided by the population.
What is GDP/Per Capita?
200
Below 5%.
What is a safe level of inflation in a national economy?
200
The entity that, in the United States, can raise or lower short term interest rates.
What is the Federal Reserve?
200
Individuals act to make themselves as well-off as possible.
What is the assumption of rationality?
200
The US tariff decision credited with creating the Great Depression.
What is Smoot-Hawley?
300
A measure of the buying power of consumers in one country compared to others.
What is Purchasing Power Parity?
300
A common measure of inflation.
What is the CPI - Consumer Price Index?
300
The government's capacity to alter interest rates.
What is monetary policy?
300
Decline in overall utility caused by government preemption of market price responses.
What is deadweight loss?
300
The value of a given year's productive output measured by the prices of a common base-year.
What is Real GDP?
400
A relative measure of the well-being of citizens in a country, used as a supplement or alternative to GDP.
What is the Human Development Index?
400
An unemployment rate that suggests a national economy does not have a lot of spare capacity to grow.
What is the natural rate of unemployment? Also Acceptable: What is about 5% unemployment in the US?
400
Government capacity to tax and spend as a lever for changing the speed of the economy.
What is fiscal policy?
400
A measure of inequality within a nation.
What is the Gini coefficient? Also Acceptable: What is the Gini index?
400
The optimal rate of inflation.
What is 1% to 3% annually?
500
= Y (The formula for GDP)
What is C+I+G + (X-M)? Also acceptable: What is Consumption + Investment + Government Spending (Taxes) + (Exports minus Imports)?
500
When actual GDP output exceeds the long-term potential of an economy.
What causes labor inflation? Also Acceptable: What causes factors of production inflation?
500
Sets expectations about contract enforcement and intellectual property protection.
What is Rule of Law?
500
The difference between income a nation earns from the rest of the world compared to the income other nations earn from that country.
What is the Current Account Balance?
500
Letting markets work without government intervention.
What is creative destruction?